When importing road vehicles(including motorcycles and trailers) into Australia, Customs need to be able to determine the value of your road vehicle. There are two methods we can use to determine the Value for Customs. "Transaction value", or Alternate Method" are the two choices. Becasue each importation has different criteria, its a case by case assessment of which meathod is most suitable for you, and will give you the lowest amount of GST and Duty payable.
Transaction value method (Bill of Sale)
The first question to ask when importing a road vehicle is, can the “transaction value” be used. Transaction value method uses the price actually paid or payable for the road vehicle to determine the customs value. For transaction value method, customs value is calculated in the following manner:
When the transaction value method is not used
Where any of the above situations have occurred, the transaction value method cannot be used and an alternate method of determining the customs value will be considered. Customs and Border Protection experience has shown that the majority of road vehicles imported cannot be valued using the transaction value method because they were not purchased solely for export to Australia, or the vehicle has depreciated since purchase due to use.
Alternate Methods of determining the customs value
Where the Transaction value method is not used, then the Customs Value will generally be assessed using the Fall Back Deductive method.
The Fall-Back Deductive method is the most appropriate method for establishing the customs value of imported road vehicles when it is unable to be determined using the previous methods. This method is based on the cost of the road vehicle at the Australian wharf (i.e. the “landed cost”). The value is established by referring to an ‘expert’ appraisal. We will appoint an approved ‘expert’ valuer at destination that will be able to give an indication of the landed cost to enable an estimate of taxes to be ascertained. Note : Cost of obtaining a valuation is the importers responsibility.
The landed cost does not include customs duty, GST, or Australian inland freight. Once all allowable deductions have been made to the appraised value, the resultant value will be used as the customs value for levying any customs duty and GST payable on the road vehicle.
If you are not sure what your car may be worth, or which method wodul be used, please call us and we can help.